Here is What Hedge Funds Think About Select Income REIT (SIR)

Since Select Income REIT (NYSE:SIR) has faced declining sentiment from hedge fund managers, it’s safe to say that there exists a select few money managers that slashed their full holdings by the end of the third quarter. Interestingly, Chao Ku’s Nine Chapters Capital Management sold off the biggest investment of all the hedgies monitored by Insider Monkey, totaling close to $1.5 million in stock. Matthew Tewksbury’s fund, Stevens Capital Management, also said goodbye to its stock, about $1 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 2 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Select Income REIT (NYSE:SIR) but similarly valued. We will take a look at Washington Real Estate Investment Trust (NYSE:WRE), Holly Energy Partners, L.P. (NYSE:HEP), Tessera Technologies, Inc. (NASDAQ:TSRA), and Korn/Ferry International (NYSE:KFY). This group of stocks’ market values match SIR’s market value.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $134 million. That figure was $87 million in SIR’s case. Tessera Technologies, Inc. (NASDAQ:TSRA) is the most popular stock in this table. On the other hand Washington Real Estate Investment Trust (NYSE:WRE) and Holly Energy Partners, L.P. (NYSE:HEP) are the least popular ones with only 5 bullish hedge fund positions. Select Income REIT (NYSE:SIR) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TSRA might be a better candidate to consider a long position.